­Established track record and experienced management
Waman Hari Pethe Sons Private Limited (WHPSPL) is among the leading gold jewellery retail chains in Maharashtra. Mr. Subodh Pethe, a member of the promoter family, along with his wife, Mrs. Sonali Pethe, operate a chain of 11 stores under the name ’WHPS’ spread across Mumbai, Thane, Raigad, Solapur and Pune. The company owns seven out of these eleven stores, and the balance is on lease. Mr. Subodh Pethe has been managing the business operations for three decades and is ably supported by the second line of management. WHPS is well supported by a dedicated team of professionals and has tie-ups with more than 200 artisans. The company specialises in Maharashtrian gold and studded jewellery.
Acuité believes that the company will continue to benefit from WHPSPL‘s strong brand equity over the medium term.

Improving revenue owing to higher realisations
The revenue of WHPSPL grew by ~14 percent to Rs. 1041.17 Cr. in FY2025 from Rs. 912.29 Cr. in FY2024, owing to higher price realisations. However, increase in gold prices have led to a decline in the overall sales volume. The EBITDA margins stood range bound at 3.20 percent in FY2025 as against 3.39 percent in FY2024. The EBITDA margins are expected to improve in the near term on account of steep increase in gold prices, which may lead to inventory gains. The PAT margin stood at 1.46 percent in FY2025 as against 1.51 percent in the previous year.
Further the revenue for H1 FY2026 stood at Rs. 345.70 Cr. as against Rs. 475 Cr. in H1 FY2026 due to lower sales volumes, however EBITDA margin stood at 10.32 percent H1 FY2026, due to inventory gains. Further, the company has recorded, revenue of Rs. 150 Cr. for the month of October 2025.
Going forward, improvement in the profitability margins while sustaining revenue growth will be a key monitorable

Moderately efficient working capital operations
The operations of WHPSPL are moderately efficient, with improving GCA (gross current asset) days over the years. The GCA days stood improved at 82 days in FY2025 from 91 days in FY2024 and 116 days in FY2023. The GCA days are driven by the inventory holding period, which has been continuously improving over the last 3 years. The average bank limit utilisation stood moderate at ~70 percent for the last six months ended August 2025.

Moderate financial risk profile
The financial risk profile of WHPSPL is moderate. The tangible networth grew to Rs. 144.41 Cr. on March 31, 2025 on account of profit accretion. Despite increase in the long term debt for capex (~7-8 Cr), the gearing stood below unity at 0.99 times on March 31, 2025. However, the TOL/TNW levels continue to remain moderate at 1.26 times on March 31, 2025. Further, the Debt-EBITDA levels, though improved, continue to remain high at 4.06 times on March 31, 2025. However, the coverage also remain moderate with interest coverage at 3.52 times and debt service coverage ratio at 2.30 times in FY2025.
The financial risk profile of the company is expected to improve over the medium term on account of no major debt funded capex plans.

Intense competition and exposure to regulatory risk
The gems and jewellery industry is fragmented and characterized by a significant unorganized segment in retail and manufacturing, making the company vulnerable to intense competitive pressures and pricing volatility driven by gold-price fluctuations. However, the company’s established brand in Maharashtra have helped them to mitigate the risk to some extent.
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